Downsizing in Greater Boston: A Seller's Plan

Start with the net, not the list price

The money available for the next home is the sale price minus the mortgage payoff, commission, deed excise tax, closing attorney fee and certificates. The estimator below adds these up from the seller's own figures, so planning starts from a realistic number.

Timing the sale and the move

• Sell first, then buy or rent: the clearest budget, with a temporary move or a use and occupancy agreement to bridge the gap.
• Buy first: possible with a bridge loan or enough savings, but it means carrying two homes for a period.
• Coordinate both closings on the same day: workable with experienced closing attorneys on both sides, and needs a plan B if either side slips.

A use and occupancy agreement lets the seller stay in the home for a short, agreed period after closing. It is negotiated in the P&S and drafted by the closing attorneys.

Deciding what the home needs before listing

Long-time owners often face a list of possible projects. Juan walks the home with the seller and separates what buyers are likely to price in from what is worth fixing, so money and energy go where they return the most.

Taxes worth reviewing with an advisor

Federal rules let many owners exclude up to $250,000 of gain, or $500,000 for married couples filing jointly, on the sale of a main home they owned and lived in for at least two of the last five years (IRS Publication 523). Long-held homes can exceed those amounts, so a tax advisor should review the numbers before listing.